At 02.17 and 02.19 hours on 8 Dec 1942, U-524 fired two spreads each of two torpedoes at the convoy HX-217 southeast of Cape Farewell. A column of fire was observed on a freighter, which was later sunk by a coup de grâce at 05.53 hours. A column of black smoke was seen issuing from a destroyer, then a freighter exploded. Steinaecker reported two ships sunk, another freighter and a destroyer damaged.

The Empire Spenser (Master John Barlow Hodge) on her maiden voyage was hit in the first attack and was later sunk by the coup de grâce. The destroyer observed was HMS Fame (H 78) (Cdr R. Heathcote, RN), which had been missed. One crew member was lost. The master, 47 crew members and nine gunners were picked up by the British rescue ship Perth (Master Keith Williamson, OBE) and landed at Greenock on 13 December.